Japanese retail giant Seven & i Holdings is now in the process of choosing a buyer for York Holdings, which controls its supermarket operations.

The company plans to sell a majority of the unit by February 2026 as part of restructuring. York Holdings includes supermarket chain Ito-Yokado.
It closed the first round of the bidding process on Thursday.

Seven & i established York Holdings in October for its non-convenience store operations in order to concentrate on its 7-Eleven business.

Ito-Kogyo, which is linked to Seven & i, is aiming to take the retail company private to fend off the offer from Canadian convenience-store giant Alimentation Couche-Tard.

Major trading house Sumitomo Corporation is in the running. With a supermarket chain under its umbrella, it is apparently looking for synergies with York Holdings and its Ito-Yokado city-based supermarket network.

Sources say investment fund Japan Industrial Partners also took part in the bidding.

The fund purchased Japanese industrial giant Toshiba last year. It has since delisted from stock exchanges in Japan and has been working to rebuild its business.

US investment fund Fortress Investment Group has also made an offer. Last year it purchased department store chain Sogo & Seibu, which had been under the Seven & i umbrella.
US investment firm KKR is also bidding.

Seven & i will choose a buyer based on bids and likely growth strategies.